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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Air Canada's Sloan Ratio for the quarter that ended in Mar. 2026 was -6.30%.
As of Mar. 2026, Air Canada has a Sloan Ratio of -6.30%, indicating the company is in the safe zone and there is no funny business with accruals.
Air Canada (TSX:AC) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Air Canada has a Sloan Ratio of -6.30%, indicating the company is in the safe zone and there is no funny business with accruals.
Air Canada Sloan Ratio % Related Terms
Air Canada Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Air Canada's Sloan Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Airlines subindustry, Air Canada's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Air Canada Sloan Ratio % vs Transportation Industry
For the Transportation industry and Industrials sector, Air Canada's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Air Canada's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Air Canada's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Air Canada's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 186 (Jun. 2025 ) + 264 (Sep. 2025 ) + 296 (Dec. 2025 ) + 48 (Mar. 2026 ) = C$794 Mil.
Air Canada's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 895 (Jun. 2025 ) + 813 (Sep. 2025 ) + 423 (Dec. 2025 ) + 1798 (Mar. 2026 ) = C$3,929 Mil.
Air Canada's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was 241 (Jun. 2025 ) + 100 (Sep. 2025 ) + -1209 (Dec. 2025 ) + -184 (Mar. 2026 ) = C$-1,052 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Air Canada (TSX:AC) has a Sloan Ratio % of -6.30% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Air Canada and its competitors.
Is Air Canada's Sloan Ratio % too high?
Air Canada's current Sloan Ratio % is -6.30%. Overall, Air Canada has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Air Canada's Sloan Ratio % compare to DAL and UAL?
Air Canada's Sloan Ratio % of -6.30% can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Transportation company?
A good Sloan Ratio % depends on the Transportation industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Air Canada and its competitors. Air Canada's current Sloan Ratio % is -6.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Canada stock overvalued right now?
Based on GuruFocus' analysis, Air Canada (TSX:AC) is currently considered Fairly Valued. The stock's GF Value™ is C$24.38, compared to a current price of C$23.27 — trading 4.6% below its estimated fair value. The current Sloan Ratio % is -6.30%. Air Canada's overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Air Canada (TSX:AC), the current Sloan Ratio % is -6.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Air Canada (TSX:AC) Overvalued in 2026?
Based on GuruFocus' analysis, Air Canada stock appears to be undervalued.
The current stock price of C$23.27 is trading 4.6% below its estimated GF Value™ of C$24.38.
GuruFocus considers Air Canada to be Fairly Valued.
Key valuation signals for TSX:AC:
Sloan Ratio %: -6.30%
GF Value™: C$24.38 vs. price of C$23.27 (4.6% below fair value)
No single metric tells the full story. See the TSX:AC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Canada is Canada's largest airline, serving nearly 50 million passengers each year, together with its low-cost subbrand, Rouge, and contracts for regional connection flights into its network. Air Canada is a sixth-freedom airline, which flies many passengers on long-haul trips to and from the US with a layover in Canada.
84GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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